﻿Extraordinary erosion in exchange rate termed unfortunate

KARACHI: Pakistan Businessmen and Intellectuals Forum (PBIF) on Thursday said record fall in value of rupee versus dollar is unfortunate which has impaired all the sincere efforts to stabilise exchange rate since last two years.

Export policy should have been adjusted to improve export competitiveness leaving exchange rate unchanged as it will damage masses by making imports costly and stoking inflation, said PBIF President and former provincial minister Mian Zahid Hussain.

He said that the uncertainty has hit importers and masses while currency dealers are selling dollar up to Rs 106.50 which calls for intervention by authorities. Devaluation will not support the exports as expected due to recession in the EU therefore the export industries should focus on cost reduction, skill development, value addition and upgradation, he said.

Mian Zahid Hussain said that masses will pay the price for wrong decision to appoint blue eyed as export managers and commercial counsellors. Export sector has been addicted to subsidies, tax breaks, bailouts, and currency devaluation and the recent development will deprive them of incentive to upgrade machinery, improve quality and find new markets.

He said the situation will lead government to borrow more to stabilise forex reserves which is a recipe for economic suicide.